2012 Annual Report - Media Prima Berhad
2012 Annual Report - Media Prima Berhad
2012 Annual Report - Media Prima Berhad
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29 INTANGIBLE ASSETS (CONTINUED)<br />
The recoverable amounts of the CGUs are determined based on value-in-use calculations. Cash flows are derived<br />
based on the approved budgeted cash flows for 2013 and projections for a period of four (4) years, based on<br />
external data. The projections reflect management’s expectation of revenue growth, operating costs and margins for<br />
the cash-generating unit based on current assessment of market share, expectations of market growth and industry<br />
growth.<br />
The key assumptions used for the value-in-use calculations are as follows:<br />
<strong>2012</strong><br />
NSTP BTO Kurnia One<br />
Group Group Group FM<br />
% % % %<br />
Average revenue growth 3.0 5.6 5.6 5.6<br />
Pre-tax discount rate 10.55 12.23 12.23 12.23<br />
Terminal growth rate 0.0 2.5 2.5 2.5<br />
2011<br />
Average revenue growth 5.0 7.65 7.65 7.65<br />
Pre-tax discount rate 11.55 12.88 12.88 12.88<br />
Terminal growth rate 0.0 2.5 2.5 2.5<br />
1.1.2011<br />
Average revenue growth 5.0 7.5 7.5 7.5<br />
Pre-tax discount rate 12.0 16.0 16.0 16.0<br />
Terminal growth rate 0.0 2.5 2.5 2.5<br />
(i)<br />
(ii)<br />
A terminal growth rate of 0.0% to 2.5% (2011: 0.0% to 2.5%; 1.1.2011: 0.0% to 2.5%) is applied in the VIU<br />
calculation. The average revenue growth rate and terminal growth rate reflects long term growth forecast.<br />
The growth in overhead costs are determined based on past performance and expected inflationary factors and<br />
is consistent with previous years.<br />
(iii) Contribution margins and EBITDA margins are projected based on the industry trends, together with the trends<br />
observed within the Group.<br />
(iv) Maintenance costs and taxes at 25% is incorporated in the cash flows.<br />
RADIO OUTDOOR<br />
NETWORKS<br />
The Group’s review includes an impact assessment of changes in key assumptions. Based on the sensitivity analysis<br />
performed, the Directors concluded that no reasonable change in the base case assumptions would cause the<br />
carrying amounts of the CGUs to exceed their recoverable amounts.<br />
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<strong>2012</strong><br />
From Our Perspective Who We Are Our Strategy & Achievements Our Performance Our Responsibility Our Leadership Corporate Governance The Financials Additional Information
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